52 Week High Low (Less Than 2 Minutes) | Finance Strategists | Your Online Finance Dictionary

– Hi, I'm Ranie with Finance Strategists. In this lesson, we're going to cover. The 52-week high/low is the
highest and lowest price at which a security, such as a stock, has traded over the prior 52-week period. It is a measure used by investors to analyze a stock's current price, and help predict its future movements. A stock may garner more
attention from investors as it nears its 52-week
high or 52-week low. The 52-week high/low is determined by the closing price of the security.

The price of a stock may very well fluctuate above or
below its 52-week record over the course of a trading session. But if the price does not close
above or below the record, the change does not register as having hit a new high or low. Investors may use the
52-week high/low metric to determine an entry or
exit point for a given stock. Oftentimes, these fluctuations
indicate to investors that a stock has reached
its peak or bottom, and may not rise or fall in the near term. For that reason, the 52-week high or low provides a level of resistance or support to a given security. Alternatively, if a stock
reaches its 52-week high and continues upward, this could indicate to investors that there must be some factors that have generated enough momentum to carry the price above
its previous 52-week range.

They believe that the momentum will continue to push the
price in the same direction, making this a good time to buy. The same rationale can be applied when a stock dips below its 52-week low. (gentle music) For more information, visit
www.financestrategist.com. Finance Strategists, strategies for you… (man laughs).

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